An employee buyout package is an early retirement package offered by employers who desire to eliminate jobs. Buyouts may only be offered to a particular group of people, and in some cases that group may include you. This may come as an emotional blow, as you may have had no intention of leaving your job and may have enjoyed it. Now you are faced with the difficult task of determining if you should take the buyout or if you should stick with the company.

Here is some basic information you will need to take into account when evaluating an employee buyout package.

 Make a Decision

Figuring out the financial details of a buyout package can be difficult, even if it is easy for you to leave your employer. It is important to consider how secure your job will be if you decide to stay. You will want to consider the idea that you could suffer from a future layoff, where a lesser severance package is offered.

Your age is a factor in evaluating the buyout as well. You may be too young for retirement, so the severance will be your source of income while you find another job. If you were already considering retirement within a few years anyway, this may give you the opportunity to start that phase of your life.

In most companies, you will have 45 days or another specified amount of time, to consider the buyout. You will want to utilize all of this time to complete all research required for such an important decision. It is important to consider that, by signing the agreement, you give up any right to file any other work-related claims or issues against your employer.

Ask If An Employer Can Provide an Even Better Package

Ask in writing if an improved buyout package can be brought to the table. The employer may not have an obligation to inform workers about a pending better deal unless asked. Ask to be informed of any changes to the buyout package; you want the best deal available. Submit the question and get all responses in writing.

Find Out Where Your Benefits Stand

Find out if continued health benefits will be included in the package for you and your family. If health coverage is not included, negotiate it to be part of the deal. Remember that this deal is not set in stone and health insurance is very expensive and important.

For lump sum payments, consider the taxes that will be applied; a buyout is taxable income. If the payout will place you into a higher tax bracket, consider negotiating payout plans with your employer to avoid high taxes.

You will want to use vacation and sick leave before you leave or have it included in your buyout package.

Additional Ideas to Consider

--    Retirement benefits- Find out what your employer plans to do with your retirement benefits.

--    Support system- Make sure that you have the support of your family and friends. You will need this for morale building during future job search attempts. In a rough economy, it generally takes more time to secure new positions in companies than it has in the past. You could be forced to search for a very long period of time. Support and encouragement can help you through it.

--    Create a budget and cut out any unnecessary expenses.

--    Take advantage of any extra services your employer may be offering to those who accept the buyout. Sometimes employers will offer career planning fairs and seminars. In today’s economy, you will need these resources if you plan to reenter the workforce.

Additional Resources:

Some additional articles and resources to help you evaluate your employee buyout include:

    --  National Center for Retirement Benefits:  http://www.ncrb.com/

    --  BNET:  http://jobfunctions.bnet.com/Career/Professional+Development/